Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Income Tax - Highlights / Catch Notes

Home Highlights December 2020 Year 2020 This

Contingent liability - provision for software expenses - the ...


Provision for Software Expenses Validated by Auditors; Contingent Liability Claim Approved for Software Purchases.

December 14, 2020

Case Laws     Income Tax     AT

Contingent liability - provision for software expenses - the accounts of the assessee have been audited by the statutory auditors and they did not find any fault with the quantum of provision for software expenses created by the assessee. Hence it is not a case that there was no basis for creating the Provision for software purchases. - claim of expenditure allowed - AT

View Source

 


 

You may also like:

  1. Disallowance of claim of Provision for expenses - unascertained liability or not - By belated receipt of bills, the payment only gets postponed, but not the liability...

  2. Allowable expense u/s 37(1) - provisions for claim Incurred but Not Reported (IBNR) and claim Incurred But Not Enough Reported (IBNER) - whether such provisions are in...

  3. Disallowance on account of provision for expenses made under normal provisions of the Act as well as in the computation of book profits u/s.115JB - The assessee company...

  4. MAT computation u/s 115JB - Adjustment for computation of book profits u/s. 115JB on the ground that expenses are unascertained liability. - The Tribunal addressed each...

  5. Provision for future liabilities (expenses) - whether allowable - mercantile basis of accounting - held yes - HC

  6. Disallowance of claim made on account of "Contingent provision for standard assets" - provision in question being in the nature of purely a contingent one and there is...

  7. Provision made for future expenses - Allowablity u/s 37(1) - complete details filed by the assessee to show that the expenditure in question was not contingent liability...

  8. Provision for ascertained liability or contingent liability - Tribunal committed a serious error in law in holding that such ad hoc provision would nevertheless qualify...

  9. Nature of software expenses - these are towards payment for renewal of software which the assessee was using for client deliverables - software expenses are revenue in...

  10. Software expenses - revenue v/s capital expenditure - software may be needed like raw material - computer software expenses were revenue in nature - HC

  11. The Delhi High Court addressed the disallowance of provision for unsettled claims and Incurred But Not Reported (IBNR) Claims Reserve. The court held that the provision...

  12. Computation of MAT - the contribution to the Molasses reserve fund can be viewed as a provision in nature and it is not an actual liability and the provision created for...

  13. Disallowance of wage arrears u/s 40a(ia) - contingent liability or not - non deduction of TDS - assessee created an adhoc provision for wage arrears - Liability has been...

  14. Addition of overlay expenses claimed in Profit & Loss A/c - the assessee company has a present obligation arising out of the concessionaire agreement executed with NHAI...

  15. Nature of expenses - Expenses incurred on Enterprise Resource Planning (“ERP”) and software expenses - revenue or capital expenditure - in today’s fast changing...

 

Quick Updates:Latest Updates